Oil drops on rising US drilling, steady OPEC supply

30 March, 2017, 01:58 | Author: Elaine Woods

Opec will extend the deal if stockpiles are still above their five-year average, Saudi Arabia Energy Minister Khalid Al-Falih said in an interview with Bloomberg Television last week.

In the United States, West Texas Intermediate (WTI) crude futures were up 33 cents at $48.38 a barrel, after testing support at $47 a barrel overnight.

In late November, Mohammed Bin Saleh Al-Sada, (Organization of the Petroleum Exporting Countries) OPEC's president said the group will reduce output by 1.2 million barrels of oil a day starting January 2017.

The revival of shale oil production - whose growth added to the oversupply that battered oil prices in mid-2014 - has restrained the rally this year and may worry OPEC leaders.

Global benchmark Brent futures for May delivery were down 84 cents, or 1.7 per cent, at $US50.12 a barrel by mid morning trade in NY on Wednesday (early Thursday AEDT).

The market may come under further pressure as US rig counts continue to rise, indicating production growth is outpacing demand, he said.

"I think oil is reacting still to the steady rise in the U.S. rig count and the realization that momentum is building to the downside from the repositioning of speculative interests in the market", said John Kilduff, partner at Again Capital in NY.

Viral homemade slime recipe gives 11-year-old girl 3rd-degree burns
That's what may have been the case with Kathleen, who was woken in the middle of the night by a sudden pain in her hands. Kathleen's mother says her daughter had made the slime many times before without any problems. "It's fine.

IS counter-attacks to defend north Syria town: monitor
The jihadist group still controls the main dam itself, Syria's largest, which straddles the Euphrates River. However, the SDF announced on Monday that the structure had been examined by engineers and was intact.

One Killed And 15 Injured in Cincinnati Nightclub Shooting
The club has a history of gun violence, but was supposed to be checking patrons for weapons, according to city and police leaders. Four policemen patrolling the parking lot rushed to render aid, but could not save the life of one victim, a 27-year old man.

Despite cuts, analysts warned of renewed or ongoing oversupply in coming years, especially as US shale producers ramp up and once OPEC returns to full capacity.

Crude oil stocks rose by 5 million barrels last week, according to Energy Information Administration (EIA) data.

"The market remains nervous about rising United States production, which is also reducing the effectiveness of output cuts by the OPEC and some non-OPEC countries", Kumar added. "Another increase would be generally bearish for WTI-related spreads", Varga said.

Oil has traditionally been a major barometer for the USA and the world economy.

USA production rose to 9.1 million bpd for the week ended March 10 from an average 8.9 million bpd for 2016 as shale producers added rigs. Declining production in the Midwest, expansions in pipeline capacity, and more attractive imports due to narrowing crude oil price spreads all contributed to reducing movements of crude by rail.

Some say the gush of new US oil in the market, combined with rising production out of Libya, will leave OPEC little choice but to prolong the production cut plan beyond the initial January-June period. EIA forecasts show that U.S. shale oil production is expected to rise again in April by 109,000 bpd to 4.96 million bpd suggesting that shale is surely making a comeback at this level of oil prices.

Recommended:

  • Woman strikes Capitol Police cruiser, taken into custody

    One picture spread on Twitter shows police officers hunched over something on the ground with more police rushing to join them. Dozens of police cars swarmed the area, and Independence Avenue between Washington Avenue and 1st Street SW is still closed.

    Spiders Could Eat Everyone On Earth In One Year

    That's about equivalent to a 200-pound man eating 20 pounds of meat each day, which sounds like an average day for The Rock. Maybe having them around the house isn't such a bad thing after all - unless, of course, they start munching on you.
    Mindy Kaling Gets A Dinner Date Out Of Dissing Sen. Cory Booker

    Mindy Kaling Gets A Dinner Date Out Of Dissing Sen. Cory Booker

    As this was unfolding in real time PATH chimed in with its train schedule to ensure that this date actually happens. Pretty soon, the two were arranging to have dinner in Newark, with Booker offering to send a Lyft for Kaling.
  • North Korea rocket test shows 'meaningful progress'

    Trump told reporters on Sunday he held meetings on North Korea over the weekend and said Kim was "acting very, very badly". North Korean leader Kim Jong Un said this year the country was close to test-launching an ICBM, prompting U.S.
    Armed burglary at Bellagio

    Armed burglary at Bellagio

    Parts of the casino complex remain closed while police investigate. "Mass panic at Bellagio.Everyone running". The Las Vegas police confirmed that a burglary took place but any reports of an "active shooter" were false.
    Protests against corruption sweep Russia, opposition leader Navalny arrested

    Protests against corruption sweep Russia, opposition leader Navalny arrested

    Medvedev, claiming that the prime minister has amassed a huge fortune that far outstrips his official government salary. In Moscow , a large number of policemen have been deployed in the streets and tens of protesters have been arrested .
  • Lakers Unable to Hold Off Wall, Wizards

    Lakers Unable to Hold Off Wall, Wizards

    By the time the final buzzer sounded, the Lakers had magically handed the Wizards an 11-point victory, 119-108. Will the Lakers cover as a sizable home underdog tonight when they host the Wizards at 10:30PM ET?
    Hong Kong escalator malfunctions, 2 mechanics arrested

    Hong Kong escalator malfunctions, 2 mechanics arrested

    The people standing on the escalator did not have time to understand what happened and they fell on top of one another. The dramatic video has been watched by hundreds of thousands of people on Facebook since the Saturday incident.
    Rouhani hints at 'big development in energy cooperations' between Russian Federation  and Iran

    Rouhani hints at 'big development in energy cooperations' between Russian Federation and Iran

    The Russian president, for his part, said Iran was a good neighbor and a stable and reliable partner for his country. Officially, matters relating to diplomatic, judicial and economic sectors are to be finalised during the visit.
  • This Classic Video Game Is Helping to Prevent PTSD

    This Classic Video Game Is Helping to Prevent PTSD

    This isn't the first study to document the healing properties of Tetris . " Tetris also requires imagination and vision". Within six hours of the viewing period, subjects were asked to either play Tetris , answer trivia, or do nothing at all.
    Perez asks for Democratic Party staff resignations

    Perez asks for Democratic Party staff resignations

    Democratic National Committee Chair Tom Perez is making some major personnel changes less than six weeks into office. Perez was elected after a fractious race in which he beat Rep.

    Kuldeep: Learnt flipper from Warne

    This was his third ton of the series - he had scored a century in the first Test in Pune and another in the third Test in Ranchi. It's his third century of the series in a country that has cruelled so many halcyon Australian batsmen of yesteryear.


Popular

Coutinho unconcerned by Everton rise ahead of Merseyside derby
On a related note: Liverpool are paying for a private jet to fly two of its pampered multi-millionaires back from Brazil. One things for sure though, Klopp needs to put his thinking cap on and find a way to cope without Lallana for one month.

UN Ambassador Nikki Haley: 'The Days of Israel-Bashing Are Over'
Last month, Haley issued a scathing criticism of the U.N. There are a lot of threats to peace and security. When she needs us, we will be there.

Ford Motor Company (NYSE:F) Analyst Coverage
Traders may use these numbers to help determine the current value of a stock, and to try to predict price movement in the future. Ward now anticipates that the brokerage will earn $0.36 per share for the quarter, down from their previous estimate of $0.46.

Sleaze talk: Kerala Minister Saseendran quits, says resignation is not a confession
Saseendran is the second minister to resign since the Left Democratic Front (LDF) took power in Kerala past year . Meanwhile, Chief Minister Pinarayi Vijayan, said he viewed the allegations "seriously".

Kentucky takes down UCLA, heads to Elite Eight
NOTES: Kentucky's first 3-pointer Friday night extended its NCAA-record streak of making at least one in 1,012 consecutive games. When asked whether it was disappointing to end his brief career like this, he quickly answered, "This is not a disappointment".

Eminem's Daughter Hailie Is All Grown Up - and Stunning! See Her Photos
Posing with her date tall and sexy, Hallie went on to give the world a good look at her long legs and her under boob. In 2013 she won the title of Homecoming Queen at Chippewa Valley High School in Clinton Township, Michigan.

Ricciardo misses grid at Aussie GP after stopping in warmup
The Red Bull mechanics eventually managed to get their driver out on track, but he was already two laps down on the leaders.

36 reasons Gonzaga can win it all
Big-time programs will come calling for him, whether it's IN or somewhere else. - Does defense really win championships? Sean O'Mara and RaShid Gaston are Xavier's only "bigs", and they simply were overmatched against Gonzaga's frontcourt.

WC qualifiers: Ronaldo's brace helps Portugal outplay Hungary 3-0
Ronaldo looks assured to catch up to Klose for the No. 2 spot on UEFA's all-time goal-scorer list as Portugal have a friendly vs. Real Madrid's star achieved the record of being now the active player with more goals in a national team.

Pope Francis: EU 'risks dying if it loses direction'
It was 60 years since the Treaty of Rome , which led to establishment of the European Economic Community and eventually the EU. Beyond the police barricades cordoning off the ancient city core to traffic, thousands marched in six different rallies.